Plain English
Pendle splits yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT), creating an on-chain fixed-income market. Buy PT to lock in a fixed yield to maturity; buy YT to speculate on yield going higher. PENDLE is the protocol’s governance and revenue-share token.
How it actually works
Pendle works with virtually every yield-bearing asset on Ethereum and L2s (stETH, weETH, sDAI, GLP, eETH, etc.). vePENDLE holders direct emissions and receive a share of fees. The protocol has dominated the LRT yield-trading market and is the backbone of much restaking activity.
What it means for you
Pendle is one of the cleanest “DeFi for institutions” stories. For HNW positioning, PT buying produces locked fixed yields with defined maturities — the closest thing to on-chain T-bill structures. vePENDLE staking provides exposure to one of the highest-revenue DeFi protocols by usage.
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Educational content only. Not investment, tax, or legal advice.